- The Nasdaq 100 has seen some downward pressure here during the trading session on Thursday again, as we continue to test a major uptrend line.
- All things being equal, I’d be watching the 23,250 level because if we can break above there, then it’s likely that we would see the market go looking to the 24,000 level.
- Ultimately, I do think that’s where we go given enough time, but the question is whether or not we can find buyers underneath.
Moving Averages
The 50 day EMA currently sits just below the upside of the previous swing low and of course just below the uptrend. Because of this, I am going to continue to look at this as a market that I’m trying to buy dips on. So, I like the idea of trying to find some type of value. If we break down below the 22,500 level, then that could lead to a much deeper correction. But a lot of this is going to come down to the speech by Jerome Powell during the trading session on Friday.
I think traders are out there looking for a handout for cheap money. And if he sounds even remotely not dovish, it will probably have everybody panicking yet again before we see new buyers. So, this is a situation where you need to be very cautious with the overall trend but recognize that it is still bullish regardless of what happens next.
Ultimately, this is a market that I do think will go looking to higher levels sooner or later, but I also recognize that we may have some noise ahead. Furthermore, you have to keep in mind that the volume is fairly thin at the moment as traders are out there on holiday, not worrying about this nonsense with the will he or won’t he questions. So, keep that in mind.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
